Ask an expert: Savers are unsure about the new Isa rules. We answer one
of their common questions

Update: Santander confirms that savers can make deposits into their Santander two-year fixed rate cash Isa account up to August 31, 2014 for products opened from March 10.

It said: "The changes mean that a customer who opens a Santander two-year fix before the 2013-14 tax year end can maximise their tax free savings, using this year’s £5,760 allowance, top-up with the 2014-15 allowance of £5,940 between April 6 and June 30, and then increase their funding to the maximum £15,000 between July 1 to August 31.

I recently told Santander that I was interested in its two year fixed-rate Isa which will pay out 2.3pc up to the year 2016. I asked what I would be able to transfer in, and it said I can only pay in the 2014-15 Isa allowance of £5,940 up until May 31, after this date I would not be able to add further deposits.

I asked if I would be able to then top up to the full £15,000 allowance on July 1, to which Santander replied: "We cannot comment."

Do you think the banks will automatically have to allow the extra deposits for the new Nisa from July, even if it's a fixed-rate scheme?

JR

George Osborne announced a surprise change to Isas in the Budget last week, raising the amount Britons could save tax-free from £11,250 to £15,000 for the 2014-15 tax year and allowing all of the money to be held in cash. The new allowance will be available from July 1.

However, there is still confusion surrounding the new Isas - rebranded 'Nisas'. JR's question is one of many from reader's perplexed by the new rules.

When we spoke to HMRC, it said that all existing Isas would become Nisas in July, with the overall Nisa subscription for the 2014-15 tax year increasing to £15,000. Read HMRC's report here, or its 'New Isa FAQ' here.

However, this does not mean all providers will change the rules on their fixed-rate products. If a provider is offering a fixed-rate Isa, they can take deposits for the new tax year until the time they specify - in Santanders case, up to May 31 - and deny any additional deposits.

A spokesman for Santander said the bank was "working through the detail of the Budget announcement and considering the implications" and would "let customers know more about the change in due course". For now, however, there would be no change to its fixed-rate Isa products.

Halifax, which offers a two-year fixed-rate Isapaying a best-buy rate of 2.05pc, confirmed it would allow additional funds to be added to its fixed-rate products from July. Previously, Halifax customers had just 60 days to make additional deposits to their Isas, but this has now been increased to 180 days, stretching past July, to allow savers to utilise the new £15,000 allowance.

Richard Fearon of Halifax said: “Halifax is Nisa-ready. We have swiftly responded to the Nisa news and we have changed the rules so our customers can take advantage of the increased £15,000 limit. Savers will be able invest in Isas from the very beginning of the tax year, use their full allowance when it becomes available in July 2014, and have the option of topping up their fixed-rate Isas until the end of September."

Skipton Building Society, which offers a best-buy five year fixed-rate Isa, will also allow customers to top up their 2014-15 tax year allowance of £5,940 up to £15,000 in July.

Other banks are yet to make changes to their Isa rules.

So for JR it would be best to wait until Santander announces its changes before fixing to a two-year contract, to avoid being caught out.